Category Archives: Project

Plan your budget for a new project

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When you are a part of an industry and are doing well, you are tend to get more work. It is probably you have created a reputation over the years that now people believe in you and therefore give more business to you. So whenever you are given a new task, you need to plan few things in advance. Do you have the required human resource to get the work done in time? Is your financial reserve sound enough to take care of any additional requirements that will come out from a new business and many more of such questions should be answered first. These are tough questions for any business and the answers can’t come out of one’s head swiftly. There will be a lot of pondering that needs to be done when there is a chance of getting some new projects.

Moving our focus towards the construction segment, a business owner has to go through the same set of questions but for him the answers are far more difficult as compared to any other person belonging to some different industry.

Basically he needs to plan his budget bit differently than people from other sectors do. He even has to estimate the estimates. Now this is really difficult and can be confusing to many. When we talk about estimating the estimate, it means that the owner of a construction company have to estimate some rough estimates of the cost to the company. For instance, he estimates the cost of raw materials may increase and if it increases then what could be the price. So what is the highest point can he take his estimation is estimating the estimate. So in the above example, he is already estimating that the price of the raw material will increase and then he is further estimating the highest point that it may reach. Similarly, he can have estimation on anything that concerns his business. These estimations are crucial as it takes you closer to the actual.

Once you have made a rough estimation, the next step is to align it well with your budget. You may know your financial position much better than anybody else and therefore preparing a budget based on the estimations will be highly fruitful. It will take you closer to your goal and slowly and steadily you will start seeing things getting more realistic. It is only because of your in-depth planning that you can come so close to the realistic figures. They may not be accurate but certainly will be well-defined.

After you match up your financial position to the market estimate, you get to understand if entering into a new venture is anyway going to be profitable to you. Getting it discussed with your team is a healthy way to move forward and you might come across some really valuable suggestions from your team members. Taking advices from the seniors of your company will help you take precise decisions. So by planning your budget for a new project, you understand if you should put your hands into it or postpone it for some time.

Invest your money in construction projects globally

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When we think about investments, we come across all sorts of investment avenues that are liquid as well as non-liquid. However, not many consider investing in construction projects globally as a good investment option. There are strong reasons attached to it which is why people are usually deterred to invest in investment projects in a foreign land. One of the strongest reasons is that you do not have a direct control on the project and it may become difficult to monitor the progress of the work by being away from the jobsite.

Other than having a direct control, other reasons also include political turbulence, company getting dissolved. However, these reasons can’t be considered to be too big for one to deter investing globally and can always be worked out before you end up investing in one such project. There are of course few Do’s and Don’ts that needs to checked first before taking a decision of any major investment in foreign land.

Check the viability of the project:-

You can definitely invest in projects that sound to be viable. Alternatively, if the project has all proper sanctions from the different authorities of that country, there is probably no other reason why it may get blocked. Investing in such projects being in a distant place can still be a good option. However, you also have to check your benefit in it. You need to first measure your risk and the returns that you can expect from the work at its completion. It will be worthy to take such risks where you know that it will fetch good returns. There are many American investors that have invested chunks of money into various foreign projects. In this case they do not have to deploy their men for the work and if there is any hurdle that shows up during the tenure of the project that will be managed by the construction company who has undertaken the work.

Reputation of the builder matters a lot:-

When an investor has to invest his money in construction projects, he definitely checks the credentials of the construction company who has taken up the work. In the same way, while investing in a construction project outside US, you have to check the credentials first. Meet the representatives of their company, do some research on their previous projects. By that you will get to know how big the construction company is and if it is prudent to invest in projects constructed by them. The reputation of the construction company should speak louder than anything else and that should be the signal for you to go ahead with them.

Stay away from countries that are politically unstable:-

You investments in a foreign land will bear fruit only if you put your money in a country that is politically stable and there is no fear of the government getting overthrown by rival political powers or the army of that land. Investment of any kind in a politically unstable country is too risky and not even worthy to take the risk.